AXT, Inc., a global manufacturer of compound semiconductor substrates, reported financial results for the fourth quarter and fiscal year, ended December 31, 2016. The results beat Wall Street expectations.
(AXT/ LEDinside)
Fourth Quarter 2016 Results
Revenue for the fourth quarter of 2016 was $20.3 million, compared with $21.9 million in the third quarter of 2016.
Gross margin was 37.1 percent of revenue for the fourth quarter of 2016, compared with 34.6 percent of revenue in the third quarter of 2016.
Operating expenses were $5.2 million in the fourth quarter of 2016, compared with $4.9 million in the third quarter of 2016.
Operating profit for the fourth quarter of 2016 was $2.3 million compared with operating profit of $2.7 million in the third quarter of 2016.
Net interest and other income for the fourth quarter of 2016 was a loss of $0.3 million, compared with a loss of $0.3 million in the third quarter of 2016.
Net profit in the fourth quarter of 2016 was $2.2 million, or $0.06 per diluted share, compared with a net profit of $2.2 million or $0.07 per diluted share in the third quarter of 2016.
Fiscal Year 2016 Results (January 1 to December 31)
Revenue for fiscal year 2016 was $81.3 million, compared with $77.5 million in fiscal year 2015.
Gross margin for fiscal year 2016 was 32.4%, compared with 21.7% in fiscal year 2015.
Operating expenses for fiscal year 2016 were $20.0 million, compared with $21.7 million in fiscal year 2015.
Net interest and other income for fiscal year 2016 was a charge of ($0.7), compared with a gain of $2.9 million in fiscal year 2015.
Net profit in fiscal year 2016 was $5.6 million, or $0.17 per diluted share, compared with a net loss of ($2.2) million, or ($0.07) per basic share, in fiscal year 2015.
Management Qualitative Comments
"Our positive Q4 results capped off a year of growth and diversification for AXT," said Morris Young, chief executive officer.
"We saw healthy demand across our substrate product portfolio, driven by a growing number of exciting technology applications. In addition, we continued to demonstrate improvement in our business model, achieving meaningful gross margin expansion and delivering solid profitability and positive cash flow."
"As we look ahead in 2017, we believe sales of indium phosphide substrates will continue to be a key driver for our business, and we hope to see traction in the 3-D sensing market later this year," Young concluded.
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